Apple announces results for third fiscal quarter of 2016

Apple announces results for third fiscal quarter of 2016

Apple has revealed revenue report for third quarter of 2016. It reported revenue of $42.4 billion and net quarterly profit of $7.8 billion. When put in comparison with third quarter revenue last year, the result presents decline in quarterly revenue and iPhone sales in second consecutive year.

In 2015, the company’s revenue was $49.6 billion and net quarterly profit was $10.7 billion. The company also revealed per diluted share that was $1.42, less than last year’s $1.85 per diluted share. Gross margin for the quarter was 38%, less than 39.7% of last year. With this, international sales make up of 63% of revenue.

The company said the quarterly dividend payment is $0.57 per share and is payable on August 11 to shareholders of record as of August 8. Presently, it holds $231.5 billion in cash and marketable securities, partially offset by $68.9 billion in long-term debt.

During the third quarter, Apple sold 40.4 million iPhones, less than 47.5 million a year earlier. Mac sales were 4.25 million units, less than 4.8 million units in the year-ago quarter. iPad sales were also falling behind to 9.95 million from 10.9 million.

For fourth quarter of fiscal 2016, the company expects revenue of $45.5–47.5 billion and gross margin between 37.5 and 38%. There is discussion over drop in average selling price, or ASP. It occurred due to introduction of lower-priced iPhone SE, which sells for $399 and more, early this year.

"The magnitude of the [ASP] drop is an indication that the iPhone SE ... has been something of a hit", wrote Jan Dawson, principal analyst at Jackdaw Research, in a post to the firm's blog.



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